TLDR
- Nike director Tim Cook bought 25,000 NKE shares on April 10 for ~$1.06M at $42.43 per share, raising his stake by 23.7%
- Nike CEO Elliott Hill also purchased 23,660 shares for roughly $1M, totaling ~$2M in combined insider buying
- NKE stock rose more than 2% Tuesday, closing at $45.15 after-hours, but is still down over 32% year-to-date
- Wall Street analysts cut price targets following weak Q3 guidance; HSBC, Goldman Sachs downgraded to Hold
- Greater China revenue dropped 11% last quarter, with management warning of a possible 20% decline ahead
Nike’s stock got a lift this week, and it came from the top.
Director Tim Cook — yes, the Apple CEO — purchased 25,000 NKE shares on April 10 at an average price of $42.43, totaling roughly $1.06 million. That brought his total stake to 130,480 shares, a 23.7% increase in his position.
Cook wasn’t alone. Nike CEO Elliott Hill also stepped in, acquiring 23,660 shares for approximately $1 million. Together, the two executives put about $2 million of their own money into NKE stock in the same week.
The purchases were disclosed via SEC Form 4 filings and came at a time when the stock is trading near a 12-year low.
NKE rose more than 2% on Tuesday, closing at $45.15 in after-hours trading. The stock’s 52-week range sits between $42.09 and $80.17.
What Drove the Stock Lower
Nike’s Q3 earnings, reported March 31, were actually a beat. The company posted EPS of $0.35 against a $0.29 consensus estimate, and revenue of $11.28 billion edged past the $11.23 billion forecast.
But guidance spooked investors. Nike said revenue could fall 2% to 4% in the current quarter, with earnings expected to stay flat through late 2026.
Greater China was a particular sore spot. Revenue there dropped 11% last quarter, and management flagged a potential 20% decline ahead, citing rising competition and softer demand.
The weak outlook triggered a wave of target cuts. Goldman Sachs dropped its price target to $52 from $76. Bank of America moved to $55 from $73. Wells Fargo cut to $55 from $65, though it kept its Overweight rating. UBS trimmed to $54 from $58.
HSBC went further, downgrading NKE to Hold and slashing its target from $90 to $48, calling it a “show-me” turnaround story.
Where Analysts Stand Now
The consensus is cautious. Out of 36 analysts tracked by MarketBeat, 17 rate NKE a Buy, 17 a Hold, and 2 a Sell. The average price target sits at $62.34.
TipRanks puts the consensus at Moderate Buy, based on 14 Buys and 11 Holds over the past three months. Their average target of $60.90 implies roughly 38% upside from current levels.
Analysts cite three main concerns: slowing product innovation, lost retail shelf space from the brand’s push toward direct-to-consumer sales, and margin pressure from rising costs and tariffs. Gross margins fell to 40.2%.
On the dividend front, Nike pays $1.64 annually — a 3.7% yield — but the payout ratio sits at 108.6%, which raises questions about sustainability if earnings don’t recover.
JPMorgan and Piper Sandler both hold Neutral ratings. Piper Sandler’s Anna Andreeva cut her target to $40 from $50.
Institutional investors hold 64.25% of NKE stock. The stock closed Tuesday’s regular session at $44.19.
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